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Decision No. 27-R-2007

January 17, 2007

January 17, 2007

APPLICATION by Great Canadian Railtour Company Ltd., pursuant to section 91 of the Canada Transportation Act, S.C., 1996, c. 10, for a certificate of fitness to operate a railway for the purposes of operating a tourist train through track usage agreements with the Canadian Pacific Railway Company between Vancouver, British Columbia and Banff or Calgary, Alberta, and through track usage agreements with the Canadian National Railway Company between Vancouver, British Columbia and Jasper, Alberta; between Vancouver and Whistler, British Columbia, and between Whistler, British Columbia and Jasper, Alberta via Prince George, British Columbia.

File No. R 8005/G1

On September 19, 2006, Great Canadian Railtour Company Ltd. (hereinafter GCRC) applied to the Canadian Transportation Agency (hereinafter the Agency) for the certificate set out in the title.

Subsection 90(1) of the Canada Transportation Act (hereinafter CTA) provides that no person shall construct or operate a railway without a certificate of fitness. Section 87 of the CTA defines a "railway", in part, as a railway within the legislative authority of Parliament.

Subsection 92(1) of the CTA provides that the Agency shall issue a certificate of fitness for the proposed construction or operation of a railway if the Agency is satisfied that there will be adequate liability insurance coverage for the proposed construction or operation as determined in accordance with the Railway Third Party Liability Insurance Coverage Regulations, SOR/96-337.

The Agency finds that GCRC is subject to federal jurisdiction by virtue of paragraph 92(10)(a) of the Constitution Act, 1867 as it is a company operating a railway across provincial borders.

With respect to the adequacy of the insurance coverage, the Agency has reviewed the material on file and is satisfied that there will be adequate third party liability insurance coverage, including self-insurance, for the operation of a tourist train by GCRC.

The Agency's review of GCRC's financial capability to self-insure for the amount of the self-insured retention was based on the confidential financial statements of its parent company, GCRC Holdings Inc., and the indemnity agreement between GCRC Holdings Inc. and GCRC in respect of the amount of self-insurance.

Accordingly, pursuant to subsections 92(1) and 92(2) of the CTA, the Agency will issue a certificate of fitness to GCRC permitting it to operate a railway for the purposes of operating a tourist train through track usage agreements with the Canadian Pacific Railway Company between Vancouver, British Columbia and Banff or Calgary, Alberta, and through track usage agreements with the Canadian National Railway Company between Vancouver, British Columbia and Jasper, Alberta; between Vancouver and Whistler, British Columbia and between Whistler, British Columbia and Jasper, Alberta via Prince George, British Columbia.